raeoflyte
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Post by raeoflyte on Dec 18, 2019 19:06:34 GMT -5
A buyer can walk at any time and just lose earnest money here. I walked away from a house purchase 1 week prior to closing. I've never heard of any other set up.
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raeoflyte
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Post by raeoflyte on Dec 18, 2019 19:07:20 GMT -5
How can you force them to close if they don't have financing?
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Deleted
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Post by Deleted on Dec 18, 2019 19:08:17 GMT -5
Why do you need to move back? Aren't the Hmong groups buying? Did you sign something that prevents you from selling to them? If so, for how long? My house is in an area where it snows all winter. The longer it's vacant, the bigger the chance of major damage. My house is in an area where it can be taken over by squatters. This is a big problem where I live and it can take up to 6 months to evict them if they move in. It just isn't safe for my house to sit empty all winter. A few weeks, fine. All winter, no.
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Deleted
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Post by Deleted on Dec 18, 2019 19:12:18 GMT -5
OTOH, going back to the house may put you in a stronger bargaining position when dealing with the next offers (from whomever). Whatever is the case, I'm sorry that this has happened.
At the risk of bright-siding you, may I point out that this whole rigamarole has led you to jettison stuff that you could not possibly hold on to and shown you how nimble you can be?
Bright-siding - love that. Yeah, I don't have any issue with anything I got rid of. However, I don't have a vehicle and can't move back home without one. So, that would require the buyers free up the other 7K in escrow so I could buy a short-term vehicle. I had my internet uninstalled. It's about $500 to reinstall so I could work, and that would suck. Ideally, the buyer figures it out and closes.
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Deleted
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Post by Deleted on Dec 18, 2019 19:14:04 GMT -5
A buyer can walk at any time and just lose earnest money here. I walked away from a house purchase 1 week prior to closing. I've never heard of any other set up. Here there are deadlines for inspections, appraisals, and loans. However, my buyer waived, in writing, all of those contingencies. By contract, they now have to close. If they don't, they can be sued. Which doesn't do me a lot of anything, since I don't have the money to hire a lawyer...
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raeoflyte
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Post by raeoflyte on Dec 18, 2019 19:33:37 GMT -5
We have deadlines on everything here too, but a buyer missing or waiving them and failing to buy is still just a penalty of losing earnest money.
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oped
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Post by oped on Dec 18, 2019 20:40:54 GMT -5
How can you force them to close if they don't have financing? That’s why you put the sale contingent on financing. Etc. so you have an out. You can sue people for money they don’t have... in that case it becomes the same as any other settlement.
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CCL
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Post by CCL on Dec 18, 2019 21:19:15 GMT -5
We have deadlines on everything here too, but a buyer missing or waiving them and failing to buy is still just a penalty of losing earnest money. I'm sure it depends on the actual contract, but around here, under most contracts without contingencies the buyer who fails to complete the purchase can be sued. Most people don't want to bother, keep the earnest money and move on to the next buyer. I've backed-out on a few houses I had contracts on. The most I actually lost was $500, but could have lost much more.
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finnime
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Post by finnime on Dec 18, 2019 21:58:52 GMT -5
I hope for you, @shastasnewlife, you either close or worst case get the earnest money, buy yourself a car and can take things easy for a couple of months until the next buyer shows up. Closing would be best, as you said. Sending good mojo your way. Best to you.
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Deleted
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Post by Deleted on Dec 18, 2019 22:23:30 GMT -5
Wow. It says online that if my buyer's forfeit their good faith deposit because they can't close that my broker gets 1/2. WTF? Interesting she's never mentioned that...
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raeoflyte
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Post by raeoflyte on Dec 19, 2019 7:51:20 GMT -5
I found the clause in our contracts. Buyers or sellers could require specific performance but the default is buyers risk is earnest money.
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Wisconsin Beth
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Post by Wisconsin Beth on Dec 19, 2019 8:38:06 GMT -5
Hell. I'm sorry Shasta. Maybe one of the other groups is buying?
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NoNamePerson
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Post by NoNamePerson on Dec 19, 2019 8:38:37 GMT -5
Wow. It says online that if my buyer's forfeit their good faith deposit because they can't close that my broker gets 1/2. WTF? Interesting she's never mentioned that... Probably in the fine print of contract. Really really fine print. If and when this mess washes out one way or the other have you considered changing agents? I have no clue as to the situation where you live or if you even have much choice. I just hate that this has turned into one big CF for you when all seemed so good at the onset.
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Wisconsin Beth
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Post by Wisconsin Beth on Dec 19, 2019 8:47:32 GMT -5
I don't think she's got much choice regarding agents. And I think she said it's a 6 month contract?
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Deleted
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Post by Deleted on Dec 19, 2019 9:03:34 GMT -5
I assume that the agent has put in a lot of work trying to get this sale to close. It sounds like a lot when you say 50% of the earnest money, but it really isn't in actual dollars. It sounds fair to me that the agent get paid.
Now if the agent hasn't put in a lot of work, then Shasta has a valid complaint. I'm not sure that does her any good, though.
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haapai
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Post by haapai on Dec 19, 2019 10:29:53 GMT -5
Wow. It says online that if my buyer's forfeit their good faith deposit because they can't close that my broker gets 1/2. WTF? Interesting she's never mentioned that... Oh s***! That's big. I'm so sorry!
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TheHaitian
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Post by TheHaitian on Dec 19, 2019 11:04:58 GMT -5
Wow. It says online that if my buyer's forfeit their good faith deposit because they can't close that my broker gets 1/2. WTF? Interesting she's never mentioned that... Oh s***! That's big. I'm so sorry!
Yeah but how much is the earnest money? Agents usually suggest or have suggested to me about 1% of the purchase price or around. On my first home 306k, we only put down 1k as earnest money. On our current home 559k, we only put down 5k as earnest money. In both cases sellers requested more and I said no, it was up to them to accept or decline the offer. I was not going to risk losing a lot of money in case the deal did not go through (heard some horror stories with people putting close to their whole down payment as earnest money only to lose it when the deal did not go through - could not get approve for a loan by their bank - then tried to sue sellers to get it back but lost).
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haapai
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Post by haapai on Dec 19, 2019 11:14:44 GMT -5
It was $10K and Shasta has already received $3K. Which means that even if she or her agent sues successfully for the rest to be released, Shasta can only get $2K of that.
It's a big deal when you need to buy a vehicle with cash in order to work. A rotten nasty switcheroo.
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Deleted
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Post by Deleted on Dec 19, 2019 11:15:18 GMT -5
Oh s***! That's big. I'm so sorry!
Yeah but how much is the earnest money? Agents usually suggest or have suggested to me about 1% of the purchase price or around. On my first home 306k, we only put down 1k as earnest money. On our current home 559k, we only put down 5k as earnest money. In both cases sellers requested more and I said no, it was up to them to accept or decline the offer. I was not going to risk losing a lot of money in case the deal did not go through (heard some horror stories with people putting close to their whole down payment as earnest money only to lose it when the deal did not go through - could not get approve for a loan by their bank - then tried to sue sellers to get it back but lost). She got a lot. Like 7 or 10K.
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raeoflyte
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Post by raeoflyte on Dec 19, 2019 11:24:17 GMT -5
How likely is it to close with someone else with that low of an appraisal? Does it make sense to reduce the sales to what the appraisal came in as?
The whole thing sucks. I'm sorry.
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bean29
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Post by bean29 on Dec 19, 2019 11:49:19 GMT -5
Can you accept the appraised value as the sale price and have it go through? It looks like from the numbers you listed early in this thread, you could still get out from under and not live among cartel growers anymore if you sold it for the offer-106,000 which I am assuming would give you a sale of around $182,000 and you originally paid $90,000. I know you paid a boatload of $$ to have the well dug - don't know if you can break even on those numbers or not.
Praying for you and yours.
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alabamagal
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Post by alabamagal on Dec 19, 2019 13:02:15 GMT -5
Can you accept the appraised value as the sale price and have it go through? It looks like from the numbers you listed early in this thread, you could still get out from under and not live among cartel growers anymore if you sold it for the offer-106,000 which I am assuming would give you a sale of around $182,000 and you originally paid $90,000. I know you paid a boatload of $$ to have the well dug - don't know if you can break even on those numbers or not.
Praying for you and yours. I would also suggest that. Or hold the note on the extra amount, understanding it is a huge risk that you would ever get the money. It is especially bad when you have already made plans to move on with your life.
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Post by Deleted on Dec 19, 2019 13:33:20 GMT -5
I have multiple options. None of them terribly fun at this point:
1. Send a letter to force them to comply with the sales contract. If they don't produce funding and close in 3 days, I get their deposit of 7K. If they don't want to lose it, they can find the cash.
I also would have the option to sue them for the sales price because they are contractually obligated to purchase because all of their "exit points" have passed. I would just relist it.
2. Delay closing by asking for my own extension and try to get a backup offer and see how high it is. Then force the first buyer to close or walk.
3. Carry paper for 70K of the sale as a second position deed of trust. I would receive $218 of the money upfront, so would already make more than the appraised value but perhaps less than another buyer would pay for it.
However, I talked with a hard money lender and discovered carrying in second position has a few nasties attached to it my agent "forgot" to mention:
a. If they default on the first and they foreclose I lose my interest completely.
b. If they default on my note, I can foreclose but then I am forced to make their payments on the first or again risk losing all of my interest. If their first is short-term the payments could be thousands of dollars per month.
He did mention I am entitled to know the terms and payments of the first and I have asked for that information.
I talked to a friend's realtor who also sells in the area, she suggested telling the buyer to close or walk and release their deposit. She said this group of buyers is cheap and often finds the cash to close when forced.
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mcsangel2
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Post by mcsangel2 on Dec 19, 2019 13:44:28 GMT -5
I talked to a friend's realtor who also sells in the area, she suggested telling the buyer to close or walk and release their deposit. She said this group of buyers is cheap and often finds the cash to close when forced. Yeah, I have to admit that when you posted your update that it made my spidey senses tingle. Drug lords that can only finance a real estate transaction, and don't have cash to close? Sounds like bull and that they are trying to put one over on you (force you to carry the paper and put the responsibility for problems on you so they can do whatever they want). What's stopping them from stop paying on the note? How would you evict them? How would you get the sheriff to evict them?
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NoNamePerson
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Post by NoNamePerson on Dec 19, 2019 14:44:50 GMT -5
I talked to a friend's realtor who also sells in the area, she suggested telling the buyer to close or walk and release their deposit. She said this group of buyers is cheap and often finds the cash to close when forced. Yeah, I have to admit that when you posted your update that it made my spidey senses tingle. Drug lords that can only finance a real estate transaction, and don't have cash to close? Sounds like bull and that they are trying to put one over on you (force you to carry the paper and put the responsibility for problems on you so they can do whatever they want). What's stopping them from stop paying on the note? How would you evict them? How would you get the sheriff to evict them? That’s why I said something smells rotten in Denmark.
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Artemis Windsong
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Post by Artemis Windsong on Dec 19, 2019 15:27:15 GMT -5
We need to pray this closes quickly and in your favor. I'm sorry you have to go through this.
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Deleted
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Post by Deleted on Dec 19, 2019 17:35:03 GMT -5
Shasta, I've been following this thread and just have to throw in my two cents worth. I'm no real estate expert, but I've lived a long time and seen and heard just about everything.
It's possible to successfully carry the paper on a contract for a private home to a private party. Your property is a horse of a different color, and I truly don't see it ending well for you if you agree to anything except cash in hand.
Please don't get conned, sweet-talked, coerced, into carrying the paper on your property no matter how good "they" make it look. Please don't. Do whatever else it takes, but don't carry the paper. You've struggled too long and hard to get screwed out of what you've earned.
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Deleted
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Post by Deleted on Dec 19, 2019 18:37:23 GMT -5
Shasta, I've been following this thread and just have to throw in my two cents worth. I'm no real estate expert, but I've lived a long time and seen and heard just about everything. It's possible to successfully carry the paper on a contract for a private home to a private party. Your property is a horse of a different color, and I truly don't see it ending well for you if you agree to anything except cash in hand. Please don't get conned, sweet-talked, coerced, into carrying the paper on your property no matter how good "they" make it look. Please don't. Do whatever else it takes, but don't carry the paper. You've struggled too long and hard to get screwed out of what you've earned. The mortgage broker I talked to said I am 100% entitled to see their other loan conditions, amount, and payments before I agree to carry. I've asked for that information. Another agent I talked to still has buyers and suggested I enforce this contract and if the buyer walks, then the buyer walks. She said this buyer, when pushed by another seller, magically found the cash... She thinks she can bring me another buyer, but offer price is the unknown factor. In the end, what I get now even without the carry taken into account could be higher than the other buyer will offer. It's a crap shoot. Until my agent chooses to answer me and share what the buyer decided to do, I can't make any decisions.
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haapai
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Post by haapai on Dec 19, 2019 19:04:01 GMT -5
I suspect that neither one of the real estate agents that you mentioned in the prior post is bound by professional standards that require them to consider the risks of squatters, land invasion, or your own limited finances when pitching their own services. Hell, professional ethics may be so weakly written or enforced that they feel no need to point out that grass-growing season starts in XXX, which is really, really important in your case.
If I had to choose between the two, I like the second more, but can't help but suggest that she's able to offer advice that completely ignores the risks presented by squatters, land invaders, and by your own constrained finances.
As for my own ability to offer advice, there are no constraints, just vast ignorance.
I don't know when outdoor gardening season begins. I don't know how long the sprouts have to grow in greenhouses before that. I don't know if gardeners of any club own or control land contiguous to your own.
Do you get a sense of how useless my advice might be? Now start thinking about how the real estate agents that you're talking to are probably able to pretend to be just as ignorant and offer similarly inappropriate advice.
Isn't there anyone else that you can talk to in real life that is a bit more informed than myself and a bit less mercenary than the realtors?
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Post by Deleted on Dec 19, 2019 19:51:47 GMT -5
I suspect that neither one of the real estate agents that you mentioned in the prior post is bound by professional standards that require them to consider the risks of squatters, land invasion, or your own limited finances when pitching their own services. Hell, professional ethics may be so weakly written or enforced that they feel no need to point out that grass-growing season starts in XXX, which is really, really important in your case.
If I had to choose between the two, I like the second more, but can't help but suggest that she's able to offer advice that completely ignores the risks presented by squatters, land invaders, and by your own constrained finances.
As for my own ability to offer advice, there are no constraints, just vast ignorance.
I don't know when outdoor gardening season begins. I don't know how long the sprouts have to grow in greenhouses before that. I don't know if gardeners of any club own or control land contiguous to your own.
Do you get a sense of how useless my advice might be? Now start thinking about how the real estate agents that you're talking to are probably able to pretend to be just as ignorant and offer similarly inappropriate advice.
Isn't there anyone else that you can talk to in real life that is a bit more informed than myself and a bit less mercenary than the realtors?
Of the 8 surrounding properties, 7 are now illegal grow sites. The year prior there was only 3... They plant in greenhouses early March and plant in the ground in June. We live at altitude and have a short growing season. Right now they are buying up land to erect new greenhouses and start their nurseries. The mass of growers show up about April to get the in-ground gardens prepared for planting and build their plywood sheds they live in. In other words, they want land by Feb or so to get them ready for growing. I called around and have been unable to find a real estate attorney I can consult. I called a local hard money lender to confirm what I had heard/read about second-position notes. He was happy to explain foreclosures and first/second position notes to me because he was aware of the local situation. He knows my agent and said the problem is I am not getting all the info I need to make a decision because I am not asking all of the right questions and she isn't volunteering what she knows because she has a large number of properties with this buyer and likely doesn't want to piss them off. I sent her/the title company a list of the questions he suggested I ask, and have so far been ignored. His take was if they come in with some hard money, I am already getting over appraised value and should consider my note "bonus" if/when they decide to pay it. I agree with that. His take was the decision I need to make is to force them to walk or come up with financing. Or to agree to carry but ensure I get enough upfront that if I never see a dime I am okay with that price. The alternative is the crap shoot of getting a new buyer and risking they make me a low-ball offer.
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